If you have a note on a truck that is due to be paid off within the year, what type of liability is this an example of?

A note on a truck that is due to be paid off within the year is classified as a current liability. Current liabilities are obligations that a business needs to settle within a year or within its operating cycle, whichever is longer. Since the loan for the truck must be paid off in the upcoming year, it fits this definition perfectly.

Current liabilities typically include accounts payable, short-term loans, and other debts that are due to be settled within a short timeframe. This classification is important for financial reporting and analysis since it helps in assessing the liquidity and short-term financial health of a business. In contrast, long-term liabilities pertain to obligations that extend beyond one year, while contingent liabilities depend on future events and are not certain. Non-current liabilities is a broader category that includes long-term liabilities. Thus, the note on the truck, due imminently, is properly identified as a current liability.